Introduction

Coresight Research is a research partner of Groceryshop 2025, which is taking place during September 28–October 1 at Mandalay Bay in Las Vegas, Nevada. Groceryshop is an annual conference that brings together global retailers, brands and technology leaders to discuss trends, innovations and strategies shaping the future of grocery and CPG.

The sessions at Groceryshop 2025 are categorized into four major themes, which we presented in our guide to the event:

• Efficient and AI-Powered Grocery Operations
• Understanding, Captivating and Retaining Shoppers
• The Next Frontier for Retail Media (and New Revenue Streams)
• Building Unified and Future-Ready Organizations

In this report, we present key insights from the second day of Groceryshop 2025, which mainly covered the themes of Efficient and AI-Powered Grocery Operations; Understanding, Captivating and Retaining Shoppers; and The Next Frontier for Retail Media (and New Revenue Streams). We also highlight the details on “Shark Reef” Startup Pitch competition held on day two of the event.

Groceryshop 2025 Day Two: Coresight Research Insights

“Shark Reef” Startup Pitch Competition

The “Shark Reef” Startup Pitch competition saw 12 early-stage retail-technology innovators compete to win the Judges’ Choice and Audience Choice awards. Deborah Weinswig, CEO and Founder of Coresight Research, emceed the pitch competition and served as lead judge.

The “Shark Reef” startup pitch competition comprised two rounds:

Round 1: All competitors presented for three minutes on how their innovative technologies are addressing important challenges in retail. The judges and audience then rated each presentation, and the six companies that received the highest aggregate ratings progressed to the next round.

Round 2: The finalists each participated in a more in-depth Q&A session with the judging panel. The judges and audience re-rated the finalists to determine the winners! For more information on the companies, see our Innovator Profiles report.

• ReFiBuy outlined the rise of agentic commerce, enabling retailers to manage presence across emerging AI-driven shopping engines.
• GrocerAI highlighted the failure of legacy search and introduced natural-language, intent-based grocery search that supports health and wellness use cases.
• BetterBasket focused on AI-native pricing and product relationship mapping, helping grocers adapt to private label proliferation, tariffs and margin pressures.
• Gain demonstrated AI “employees” for procurement, onboarding and negotiations, suggesting a structural redefinition of workforce models.
• Buncha highlighted delivery economics by prioritizing batching, refrigerated vehicles, and W2 drivers over gig models. Their model better supports large basket stock-up trips rather than on-demand fill-ins. The company’s white-label model lets retailers embed Buncha into their own sites, reducing risk by improving route density and unit economics.
• Relocalize talked about microfactories to eliminate middle-mile logistics, starting with packaged ice, cutting costs by 30% and emissions by 90%.
• Sotira applied AI to the $800 billion surplus inventory challenge, providing automated liquidation and monetization for CPGs and grocers.
• MUSE showcased robotics to reduce labor constraints, handling tasks from stocking to theft deterrence and layering monetization opportunities through data.
• Kalder proposed a “rewards media network” that extends loyalty monetization beyond anchor retailers.
• Chimeable solved the quality-cost-scale tradeoff in UGC campaigns by leveraging AI-assisted creators.
• Scrollmark addressed the long-standing attribution gap in organic social, directly linking consumer actions to purchase outcomes
• Palate showed how eye-tracking and high-fidelity consumer research can prevent costly product missteps, offering velocity forecasting and actionable pre-launch insights

Of these companies, the expert panel selected MUSE as the Judges’ Choice winner.

The Audience Choice winner was Scrollmark.

Deborah Weinswig, CEO and Founder, Coresight Research
Source: Groceryshop

 

We present key insights from the sessions of day two of Groceryshop 2025.

1. Efficient and AI-Powered Grocery Operations

AI as the Next Growth Lever for Grocery

AI is moving from being just a helpful tool to becoming the backbone of grocery retail. Across sessions, speakers emphasized that AI cannot sit on the sidelines—it needs to be built into every part of the value chain, from engaging shoppers and running stores to managing supply chains and making groceries more affordable. Grocers that bolt on AI as an afterthought risk falling behind, while those that build scalable systems, keep human oversight and apply AI across both planning and customer experience are creating a new model for growth. Beyond cutting costs or speeding up tasks, AI is transforming how grocers approach loyalty, personalization, product choices and labor—marking a structural shift in the industry.

Michelle Cucchi, Product Marketing Director at Algolia, warned that grocers who fail to adopt AI could face the same fate as A&P, once the largest US grocer, which collapsed after failing to modernize. Cucchi presented examples of AI in action: smarter search tools that lifted conversion rates by more than 50%, dynamic recipe planners that adjust for dietary needs or guest counts, personalized recommendations when items are out of stock, and “inventory that talks back,” providing real-time visibility into stock. She positioned these as table stakes for the “unified grocery experience” demanded by digital-first shoppers, particularly Gen Z, who are 46% more likely to shop online than in-store.

Peter Volynsky, Chief Commercial Officer, US at Zip Co, pointed out that 119 million Americans are financially underserved and 13% face food insecurity, making Buy Now Pay Later (BNPL) an essential financial tool for purchasing groceries. Originally designed for discretionary purchases, BNPL is now being used to split payments on groceries, covering essentials like meat, seafood and eggs. Volynsky shared that 73% of Zip users rely on BNPL to manage their monthly budgets and 64% use it to bridge the gap before payday—particularly gig workers who lack consistent income streams. He added that Zip is growing quickly in the US, having already passed its 100 millionth transaction.

On the supply chain side, Miker Herder, VP, Supply Chain at Infor, pointed out that many grocery warehouse management systems are outdated—built decades ago and patched with numerous customizations. This has created a weak foundation that makes modernization difficult. He explained that grocers need to innovate to stay competitive, but legacy systems slow them down at every step. He added that modernizing is not just about efficiency—it also affects employee retention. While Gen X workers can manage clunky systems, 41% of Gen Z employees will quit if the tech/UI is poor. Herder emphasized that automation, robotics and flexible cloud-based systems are essential to tackle both complex operations and labor shortages.

Michelle Cucchi, Product Marketing Director at Algolia
Source: Groceryshop

 

2. Understanding, Captivating and Retaining Shoppers

The GLP-1 Shopper and Health-Driven Retail

Health is now one of the biggest factors influencing how people shop for food, and the rise of GLP-1 weight-loss drugs is accelerating this shift. People on these medications eat less overall but want foods with more nutrients in every bite. That means brands and retailers need to rethink assortments, marketing and partnerships to meet the needs of this new health-conscious cohort. The biggest opportunities lie in creating nutrient-rich products, sharing clear and credible health information and acting quickly as new consumer trends emerge through tools such as social listening.

Leigh O’Donnell, Head of Shopper & Category Insights, Kantar, highlighted the rapid growth of the GLP-1 market, a trend that Coresight Research has covered across sectors. In 2023, the global market for GLP-1 drugs was valued by Morgan Stanley at $77 billion over a 10-year trajectory. That market size was updated by Morgan Stanley this year (2025), with projections nearly doubling to $150 billion over a 10-year period. She noted that within the next decade, up to 20% of eligible Americans could be using GLP-1 therapy. Key drivers behind this surge include rising obesity rates, improved drug effectiveness with fewer side effects and advances in formulations that are expected to lower costs over time.

O’Donnell also highlighted behavioral changes among users: 93% of those surveyed reported making healthier choices after starting GLP-1, 43% said they make better overall decisions and 38% indicated they eat or drink less. Additionally, 69% described themselves as actively working to improve their health on a daily basis.

Linda Bethea, CMO, North America, Danone, said this is a fundamental shift, not a short-term trend. GLP-1 users consume about 40% fewer calories, which forces brands to design foods that deliver more nutrients in fewer calories. She described how Danone is leaning on its science-based background to create fortified and functional products. To support this, Danone has launched a GLP-1 Nutrition Hub to educate consumers with credible, science-backed information.

Bethea also highlighted the role of influencers. Doctors and health experts are most effective at the early education stage, while lifestyle influencers connect more effectively later in the journey. She said retail media is a powerful tool for reaching consumers at the point of purchase, and audio channels like podcasts are also proving effective. But education remains the biggest challenge—helping consumers understand their nutritional needs, while also making sure company leaders recognize that GLP-1 is not a passing fad. She added that agility is key, especially in staying ahead of fast-moving health trends like protein, gut health and reduced sugar.

• Look out for the Coresight Research Playbook on how retailers and brands should adapt to GLP-1 adoption, coming soon.

Linda Bethea, CMO, North America, Danone (Left); and Erin Cabrey, Senior Reporter, Morning Brew (Interviewer)
Source: Groceryshop

 

Lidl US: Efficiency, Private Brands and Supplier Partnerships

Lidl US is doubling down on its reputation as a lean, efficient discounter. Its strategy is built around offering fewer products, focusing heavily on private brands and using technology like electronic shelf labels to save labor and cut costs. At the same time, Lidl wants to be a preferred partner for suppliers, building strong relationships through long-term contracts.

Joel Rampoldt, CEO, Lidl US, said his priorities are talent, commercial excellence, operational excellence and financial transformation. On products, Lidl reduced its range from 4,500 SKUs to 3,250, using a “category management” approach to eliminate duplicates. Private brands now make up about 80% of the range, but Rampoldt said national brands are still important, especially to highlight the price difference against Lidl’s own products.

He also explained Lidl’s approach to suppliers. The company aims to be “every supplier’s first choice,” offering predictable, long-term contracts and investment to help partners grow. About 85% of Lidl US products are sourced domestically, and Lidl has been running supplier roadshows to explain its model. Globally, Lidl operates with the philosophy “as global as possible, as local as necessary,” which strikes a balance between scale and local sourcing.

Rampoldt highlighted technology as a key driver of operational efficiency. The adoption of electronic shelf labels not only saves store teams time each week but also ensures accurate pricing. Looking forward, Lidl plans to introduce advanced self-checkout hardware and software from Europe to the US market. Rampoldt noted that Lidl continuously seeks to streamline processes and “take steps out,” aiming to make operations faster, leaner and more efficient.

Sprouts Farmers Market: Health, Discovery and Differentiation

Sprouts is carving out a very different path from discounters, with a focus on health enthusiasts, experiential shopping and discovery. Rather than being a shopper’s main grocery store, Sprouts wants to be a complementary destination—known for fresh produce, organic products and unique finds. Store design, product sourcing and marketing all reinforce this positioning.

Jack Sinclair, CEO, Sprouts Farmers Market, described how Sprouts’ smaller-format stores are built for openness and visibility. With low shelves and wide sight lines, customers can see across the store easily. Fresh meat is placed at the start, produce in the middle, and bulk sections offer both value and portion control. A central “innovation center” features new products not found in other stores, making shopping feel like a “treasure hunt.” Sprouts also employs a “Chief Foraging Officer” whose role is to scout entrepreneurial brands and bring them to market.

Sinclair described Sprouts’ growth ambitions: the retailer currently has 450 stores in 24 states but sees potential for 1,400 locations nationwide. To support this, Sinclair said new distribution centers are being added so stores are always within 250 miles. Fresh produce accounts for 20% of sales, with organic representing more than half of that mix.

On digital, Sinclair noted that the channel’s share of sales jumped from 2% pre-Covid to 15% post-Covid and has held steady. Partnerships with DoorDash and Uber Eats have enabled Sprouts to extend its reach, and he emphasized that fresh products perform equally well online as they do in-store—a sign of shopper trust. Sprouts is also launching a new loyalty program, with early adoption showing strong sign-ups.

He summed up Sprouts’ strategy in four parts: merchandising, real estate, supply chain and marketing. Fresh produce remains a core differentiator, but competitive pricing is also essential, especially as inflation puts pressure on both consumers and farmers.

Jack Sinclair, CEO, Sprouts Farmers Market (Left); and Chris Walton, Co-CEO, Omni Talk (Interviewer)
Source: Groceryshop

 

3. The Next Frontier for Retail Media (and New Revenue Streams)

Retail Media’s Next Chapter: Scale, Data and In-Store Activation

Retail media is evolving from rapid growth into a phase of consolidation, differentiation, and sophistication. The sessions made three themes clear: (1) in-store activations will be the next big unlock, bridging digital and physical journeys, (2) first-party data is the true currency of the future, and (3) consistent, credible measurement is the foundation for ROI and advertiser trust.

Michele Roney, EVP, Retailer CX, Mars United Commerce, noted that retail media ad spend continues to grow, but the pace is slowing. Amazon still dominates with 75% of spend, Walmart follows with 8% and the remaining 16% is split across more than 200 networks—creating fragmentation that makes it difficult for advertisers to choose partners. Advertisers are becoming more selective, directing dollars only to networks that can prove scale, quality audiences and measurable ROI.

Roney outlined the “seven must-haves” for retail media success:

• Robust data assets with both scale and unique characteristics.
• Organizational readiness with proper resourcing.
• Comprehensive offerings spanning owned and paid placements.
• Activation tools that integrate easily with external platforms.
• Strong measurement capabilities to prove business impact.
• Internal alignment with achievable KPIs across teams.
• Ongoing demand generation to build advertiser awareness.

Retailer Perspectives: Full-Funnel and In-Store Activation

A panel featuring Bobby Watts (SVP AD Retail Media & Digital Merchandising, Ahold Delhaize USA), Christine Foster (SVP, Kroger Precision Marketing) and Abi Subramanian (Group VP, Loyalty, Walgreens Advertising Group & Owned Asset Monetization, Walgreens) brought the retailer’s perspective. All three emphasized that while technology is evolving, people remain central to making retail media effective. Watts said talent is critical to managing platforms and relationships, while Foster agreed that “technology evolves, but it’s the people behind it that make it effective.”

Each retailer highlighted their strategy:

Retail Media Strategies

• Walgreens emphasized the strength of its loyalty data and audience reach as a foundation for building brand awareness. By partnering with Circana for independent measurement and aligning with external media service platforms such as Criteo and The Trade Desk, Walgreens aims to resonate more strongly with brand advertisers and “meet them where they are”.
• Kroger highlighted the evolution of Kroger Precision Marketing (KPM), which integrates consumer insights, loyalty marketing and retail media into a comprehensive “insights-to-activation” solution. Now in its seventh year, KPM continues to focus on improving how it meets brands where they are.
• Ahold Delhaize detailed its structural transformation, merging digital and retail media teams to deliver a true full-funnel and aligned approach. The company announced the launch of Edge, a proprietary in-house ad-serving platform designed to enhance relevance and drive stronger customer engagement.

People vs. Technology

While technology is advancing rapidly, panelists agreed that retail media remains a people-driven business:

• Ahold Delhaize stressed that strong talent is critical to manage technology, build relationships and deliver results.
• Kroger echoed this sentiment, noting that while technology evolves, “it’s the people behind it that make it most effective.”

Enhancing the Customer Experience

Ensuring value-driven, seamless engagement was a common priority:

• Walgreens underscored the importance of personalization at scale, using data from online, browsing and in-store behavior.
• Kroger emphasized that sponsored products are “additive, not disruptive,” playing a crucial role in shaping the customer journey.
• Ahold Delhaize described lifecycle marketing as the path to achieving true one-to-one personalization, made possible by its robust data and evolving technology.

Unlocking In-Store Media Potential

All panelists recognized in-store media as a largely underutilized frontier in the US, with opportunities to elevate customer experience:

• Kroger noted that in-store activations should go beyond screens on walls, instead offering native, relevant messaging that integrates seamlessly into the environment.
• Walgreens highlighted its unique store footprint, with 80% of customers residing within a five-mile radius of a store, making in-store activations a powerful “point of influence” opportunity.
• Ahold Delhaize described its digital store initiative, which combines analog signage, mobile app integration and in-store media to create a connected ecosystem—bridging the gap between digital and non-digital shoppers.

Brands’ Perspectives: Integrating Retail Media into Marketing and Sales

A second panel brought the brand perspective, featuring Danielle Sporkin (SVP, Media & Marketing Services, Ferrero), Katie Neil (Head of Connected Commerce, The Coca-Cola Company) and Ajay Sharma (VP, eCommerce & OmniChannel, Target & Emerging Platforms, North America, Bayer Consumer Health). The panelists explored how leading consumer brands are redefining retail media within the broader context of marketing and sales. As retail media networks (RMNs) mature, brands are being challenged to think beyond tactical activations and integrate RMNs into full-funnel brand strategies. Key themes included evolving definitions of retail media, the complexity of measurement, the disruptive influence of social commerce, the growing role of AI and first-party data, and the need for internal and external collaboration.

• Defining Retail Media: Katie Neil said Coca-Cola views retail media as a tool of influence rather than a siloed channel, with omnichannel integration and first-party data driving brand building. Danielle Sporkin defined it broadly—covering onsite, offsite, in-store and display—emphasizing how it overlaps with ecommerce to blend marketing and sales.
• Measurement: Ajay Sharma stressed the need to move beyond campaign-level metrics to an enterprise view tied directly to brand objectives and category growth. Neil noted the lack of consistency across RMNs and described Coca-Cola’s six-to-eight-week measurement framework designed to normalize ROI. Sharma also highlighted the role of data signals in tracking shopper shifts and reallocating investment accordingly.
• Disruption from Social Commerce: Neil called social commerce a “massive unlock,” opening audiences beyond the reach of traditional retail media. Sporkin added that retailers are acting like media companies and vice versa, pushing the need for integrated strategies.
• AI and Infrastructure: Sporkin stressed that Ferrero is building foundational infrastructure first—consistent taxonomy and centralized data lakes—before layering on AI. She said this is essential for AI to deliver in personalization and discovery.
• Consumer Discovery: Sharma noted that shoppers are increasingly using tools like ChatGPT to discover products, which forces brands to think about how to engage new discovery platforms. Sporkin added that retailer partnerships are vital to understanding the future trajectory of discovery.
• First-Party Data: Sharma said retailer data is crucial for closing the loop from measurement to conversion. Neil emphasized the upstream opportunity—taking retailer audiences off-platform and applying them in national brand campaigns. Both called for more transparent, self-service access to retailer data.

For brands just starting out, Neil advised setting clear KPIs tied to business outcomes, choosing RMN partners who can deliver on those and embracing experimentation. Sporkin emphasized collaboration, both within companies (across brand, trade, shopper and ecommerce teams) and externally with retailer partners.

Left to right: Danielle Sporkin, SVP, Media & Marketing Services, Ferrero; Katie Neil, Head of Connected Commerce, The Coca-Cola Company; Ajay Sharma, VP, eCommerce & OmniChannel, Target & Emerging Platforms, North America, Bayer Consumer Health; and Molly Hop, EVP & North American Lead of Havas Market, Havas Media Network
Source: Groceryshop